Holiday savings tips: How to talk to family about cutting back

The holiday season can be a stressful time for many, especially when it comes to managing finances. Deidre Cross, the founder of Ohh You Budget, found herself in a significant amount of debt during the holidays, which ultimately led her to make a change.

Cross realized that she could no longer keep up appearances and decided to have honest conversations with her friends and family about her financial situation. This transparency not only lifted a weight off her shoulders but also helped her set boundaries and stick to a budget during the holiday season.

Financial planner Angela Iermieri emphasizes the importance of talking about money with loved ones, especially when it comes to setting limits on gift-giving and holiday spending. It’s common for people to feel pressure to match the value of gifts received, creating a cycle of overspending each year.

Yasamin Alami, a chartered professional accountant, suggests that having these conversations can alleviate stress and free up mental space. By setting a budget and being honest about financial constraints, individuals can avoid going into debt or feeling obligated to attend expensive holiday events.

It’s essential to be proactive and establish boundaries when it comes to holiday spending. This may mean saying no to certain invitations or suggesting alternative gift-giving practices, such as Secret Santa or holiday activities. By prioritizing financial goals and sticking to a budget, individuals can enjoy the holiday season without the added stress of overspending.

When declining holiday event invitations, Alami recommends proposing budget-friendly alternatives or scheduling time together in the new year. It’s okay to break away from traditional expectations and create new holiday traditions that align with your financial goals.

Ultimately, the key is honesty and open communication when it comes to holiday spending. By setting realistic expectations and being transparent about financial limitations, individuals can enjoy the holiday season without the burden of debt or financial stress.

This article was originally published by The Canadian Press on December 12, 2024.